Volta Finance Ld Volta Finance Limited - Net Asset Value(s) As At 31 December 2019

Data : 13/01/2020 @ 09:48
Fonte : UK Regulatory (RNS & others)
Titolo : Volta Finance Limited (VTA)
Quotazione : 6.17  -0.21 (-3.29%) @ 15:46
Quotazione Volta Finance Grafico

Volta Finance Ld Volta Finance Limited - Net Asset Value(s) As At 31 December 2019

 
TIDMVTA 
 
 
   Volta Finance Limited (VTA / VTAS) -- December 2019 monthly report 
 
   NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR 
INTO THE UNITED STATES 
 
   ***** 
 
   Guernsey, 10 January 2020 
 
   AXA IM has published the Volta Finance Limited (the "Company" or "Volta 
Finance" or "Volta") monthly report for December. The full report is 
attached to this release and will be available on Volta's website 
shortly (www.voltafinance.com). 
 
   PERFORMANCE and PORTFOLIO ACTIVITY 
 
   In December, Volta's NAV* total return performance was +3.3%, bringing 
the gain for 2019 as a whole to 6.7%. During the year, the share price 
total return was greater, at 8.5% as the discount to NAV narrowed. This 
discount narrowing, whilst modest, was pleasing and may well reflect the 
considerable efforts during the year to improve shareholder 
communications and bring Volta to a wider audience. 
 
   All the performance in 2019 reflected cashflows from the underlying 
assets and the consequent dividend payments to shareholders. Dividends 
totaled EUR0.62 per share during 2019, paid in 4 quarterly installments. 
Based on the end of 2018 NAV per share of EUR7.71, this represents a 
dividend yield of over 8%. In contrast, mark-to-market prices of Volta's 
assets declined modestly during the year, reflecting the conditions in 
the underlying loan markets. A little over 80% of the Company's assets 
are CLO debt or equity tranches. 
 
   Through 2019, Volta's portfolio has been significantly rotated as we 
utilised our broad mandate across the structured credit universe to seek 
out the best opportunities. We significantly increased the CLO Equity 
bucket (from 36.4% to 52.6%, including CMV and warehouses) at the 
expense of CLO debt. We also reduced the size of the Repo we have on CLO 
debt from $50m to $35m to limit our sensitivity to price volatility. 
 
   By way of illustration, in 2019, USD CLO Debt (not taking into account 
the benefit of the Repo leverage) performed** 9.1% (in USD terms) 
relative to 13.3% for USD CLO Equity. The third largest asset class of 
the portfolio, EUR CLO equity positions, performed** less, 6.9%, 
although it is fair to recognize that this lower performance partially 
reflects interest rate differentials given that it is in EUR terms. 
 
   For 2020, whilst we expect loan markets to continue to face some 
challenges, particularly a greater number of downgrades than upgrades 
(the ratio was close to 3 to 1 in 2019), we still do not expect default 
rates to increase significantly. In this context, CLO Equity, although 
being the first loss position, is the only tranche that can benefit from 
loan market price volatility through reinvestments inside CLO loan 
portfolios. 
 
   In December, we invested the equivalent of EUR3.3m through commitments 
to existing positions (the European CLO warehouse that was opened in 
July and the latest regulatory capital trade). On average, based on 
standard assumptions, these positions were purchased with a projected 
yield close to 13.5%. We sold five CLO debt positions (3 BB rated USD 
tranches and 2 B rated EUR tranches) for the equivalent of EUR12.4m in 
order to finance the end of December dividend payment and to reduce by 
$5m the amount borrowed through our repurchase agreement. 
 
   During the month, Volta received the equivalent of EUR0.3m in terms of 
interest and cash flows from its assets. On a rolling 6-month basis we 
were at EUR21.9m; an annualised yield at 15.7% of the end of month NAV. 
This is amongst the highest levels seen for many years for Volta in 
terms of its ability to generate cash flows from its assets. In January, 
some of the most recent CLO Equity purchases will pay a cashflow for the 
first time, adding to this measure of performance. 
 
   As at the end of December 2019, Volta's NAV was EUR278.3m or EUR7.61 per 
share. The GAV stood at EUR311.4m. 
 
   *It should be noted that approximately 13.0% of Volta's GAV comprises 
investments for which the relevant NAVs as at the month-end date are 
normally available only after Volta's NAV has already been published. 
Volta's policy is to publish its own NAV on as timely a basis as 
possible in order to provide shareholders with Volta's appropriately 
up-to-date NAV information. Consequently, such investments are valued 
using the most recently available NAV for each fund or quoted price for 
such subordinated note. The most recently available fund NAV or quoted 
price was for 5.1% as at 30 September 2019 and for 7.9% as at 29 
November 2019. 
 
   ** "performances" of asset classes are calculated as the 
Dietz-performance of the assets in each bucket, taking into account the 
Mark-to-Market of the assets at period ends, payments received from the 
assets over the period, and ignoring changes in cross currency rates. 
Nevertheless, some residual currency effects could impact the aggregate 
value of the portfolio when aggregating each bucket. 
 
   CONTACTS 
 
   For the Investment Manager 
 
   AXA Investment Managers Paris 
 
   Serge Demay 
 
   https://www.globenewswire.com/Tracker?data=yU2PedOrF_XZ6QYZ45TJhkCpatvFiX-M7Unbqk5j3CwL96c2IIqNusoCVlTp4P2iiI4_2rPjdfXzuHhh-J2mMORtwGoZbUgyRAmPI4_eM5A= 
serge.demay@axa-im.com 
 
   +33 (0) 1 44 45 84 47 
 
   Company Secretary and Administrator 
 
   BNP Paribas Securities Services S.C.A, Guernsey Branch 
 
   https://www.globenewswire.com/Tracker?data=XzdLcOGr1T4P9tWemo6hIUd76Rt8fSlAHM8Th91YRZFB7Roda8L31FiRUIhYbg2V3yPwq7a5KbQFXa5bbMqfhKFjeWLfkaA_ptiNHPM8_q61edT-YA9caknNhWy-gkNhSSf1yb6-4LcIVpWL3ARgZ0ocIuJs_HbDZa8bCB_CSrhLneKhnnC4gI06Rt-79mdYn5owcSQ8VWq6iKKpBVciHRVz18UV4QHIUpZGBLcRnNdx728NTy1pcZgprjjOH7xgZIPhN9Id4WGd4JSEKCxC2CFR28nh4FZCknJpnx0Z5L7sG5dwRy3o_a4rrEWu2D8L01LYXwOZG18rycRpUVgsD3W_UONIzY9oNsfPLkPkid9kOrG15dTM1Ma_7dII7t7_ 
guernsey.bp2s.volta.cosec@bnpparibas.com 
 
   +44 (0) 1481 750 853 
 
   Corporate Broker 
 
   Cenkos Securities plc 
 
   Andrew Worne 
 
   Daniel Balabanoff 
 
   Rob Naylor 
 
   +44 (0) 20 7397 8900 
 
   ***** 
 
   ABOUT VOLTA FINANCE LIMITED 
 
   Volta Finance Limited is incorporated in Guernsey under The Companies 
(Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and 
the London Stock Exchange's Main Market for listed securities. Volta's 
home member state for the purposes of the EU Transparency Directive is 
the Netherlands. As such, Volta is subject to regulation and supervision 
by the AFM, being the regulator for financial markets in the 
Netherlands. 
 
   Volta's investment objectives are to preserve capital across the credit 
cycle and to provide a stable stream of income to its shareholders 
through dividends. Volta seeks to attain its investment objectives 
predominantly through diversified investments in structured finance 
assets. The assets that the Company may invest in either directly or 
indirectly include, but are not limited to: corporate credits; sovereign 
and quasi-sovereign debt; residential mortgage loans; and, automobile 
loans. The Company's approach to investment is through vehicles and 
arrangements that essentially provide leveraged exposure to portfolios 
of such underlying assets. The Company has appointed AXA Investment 
Managers Paris an investment management company with a division 
specialised in structured credit, for the investment management of all 
its assets. 
 
   ***** 
 
   ABOUT AXA INVESTMENT MANAGERS 
 
   AXA Investment Managers (AXA IM) is a multi-expert asset management 
company within the AXA Group, a global leader in financial protection 
and wealth management. AXA IM is one of the largest European-based asset 
managers with 739 investment professionals and EUR750 billion in assets 
under management as of the end of March 2019. 
 
   ***** 
 
   This press release is published by AXA Investment Managers Paris ("AXA 
IM"), in its capacity as alternative investment fund manager (within the 
meaning of Directive 2011/61/EU, the "AIFM Directive") of Volta Finance 
Limited (the "Volta Finance") whose portfolio is managed by AXA IM. 
 
   This press release is for information only and does not constitute an 
invitation or inducement to acquire shares in Volta Finance. Its 
circulation may be prohibited in certain jurisdictions and no recipient 
may circulate copies of this document in breach of such limitations or 
restrictions. This document is not an offer for sale of the securities 
referred to herein in the United States or to persons who are "U.S. 
persons" for purposes of Regulation S under the U.S. Securities Act of 
1933, as amended (the "Securities Act"), or otherwise in circumstances 
where such offer would be restricted by applicable law. Such securities 
may not be sold in the United States absent registration or an exemption 
from registration from the Securities Act. Volta Finance does not intend 
to register any portion of the offer of such securities in the United 
States or to conduct a public offering of such securities in the United 
States. 
 
   ***** 
 
   This communication is only being distributed to and is only directed at 
(i) persons who are outside the United Kingdom or (ii) investment 
professionals falling within Article 19(5) of the Financial Services and 
Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) 
high net worth companies, and other persons to whom it may lawfully be 
communicated, falling within Article 49(2)(a) to (d) of the Order (all 
such persons together being referred to as "relevant persons"). The 
securities referred to herein are only available to, and any invitation, 
offer or agreement to subscribe, purchase or otherwise acquire such 
securities will be engaged in only with, relevant persons. Any person 
who is not a relevant person should not act or rely on this document or 
any of its contents. Past performance cannot be relied on as a guide to 
future performance. 
 
   ***** 
 
   This press release contains statements that are, or may deemed to be, 
"forward-looking statements". These forward-looking statements can be 
identified by the use of forward-looking terminology, including the 
terms "believes", "anticipated", "expects", "intends", "is/are expected", 
"may", "will" or "should". They include the statements regarding the 
level of the dividend, the current market context and its impact on the 
long-term return of Volta Finance's investments. By their nature, 
forward-looking statements involve risks and uncertainties and readers 
are cautioned that any such forward-looking statements are not 
guarantees of future performance. Volta Finance's actual results, 
portfolio composition and performance may differ materially from the 
impression created by the forward-looking statements. AXA IM does not 
undertake any obligation to publicly update or revise forward-looking 
statements. 
 
   Any target information is based on certain assumptions as to future 
events which may not prove to be realised. Due to the uncertainty 
surrounding these future events, the targets are not intended to be and 
should not be regarded as profits or earnings or any other type of 
forecasts. There can be no assurance that any of these targets will be 
achieved. In addition, no assurance can be given that the investment 
objective will be achieved. 
 
   The figures provided that relate to past months or years and past 
performance cannot be relied on as a guide to future performance or 
construed as a reliable indicator as to future performance. Throughout 
this review, the citation of specific trades or strategies is intended 
to illustrate some of the investment methodologies and philosophies of 
Volta Finance, as implemented by AXA IM. The historical success or AXA 
IM's belief in the future success, of any of these trades or strategies 
is not indicative of, and has no bearing on, future results. 
 
   The valuation of financial assets can vary significantly from the prices 
that the AXA IM could obtain if it sought to liquidate the positions on 
behalf of the Volta Finance due to market conditions and general 
economic environment. Such valuations do not constitute a fairness or 
similar opinion and should not be regarded as such. 
 
   Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the 
laws of France, having its registered office located at Tour Majunga, 6, 
Place de la Pyramide - 92800 Puteaux. AXA IMP is authorized by the 
Autorité des Marchés Financiers under registration number 
GP92008 as an alternative investment fund manager within the meaning of 
the AIFM Directive. 
 
   ***** 
 
 
 
 

(END) Dow Jones Newswires

January 13, 2020 03:48 ET (08:48 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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